THE SENATE	S.B. NO.	3285
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC UTILITIES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-     Sale of gas utility or electric utility.  (a)  Notwithstanding sections 269-7.5 and 269-19, the public utilities commission shall not approve the sale of a gas utility or electric utility, in whole or in part, to a private entity unless the utility being offered for sale demonstrates that it first solicited competitive offers for the purchase of the utility from entities that operate under a non-investor-owned utilities ownership model, and notes whether or not non-investor-owned entities submitted acceptable bids, in any application to the commission requesting authorization of the sale of the utility.

     (b)  The public utilities commission may establish a process, including timelines, for consideration of alternative bids in the event of a sale of a gas utility or electric utility.

     (c)  For the purposes of this section, "non-investor-owned utilities ownership model" means a not-for-profit enterprise that is not owned by shareholders."

     SECTION 2.  Section 269-14.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Whenever the commission finds that a [regulated water utility or regulated sewer utility] public utility is failing, or that there is an imminent threat of the public utility failing, to provide adequate and reasonable service to its customers, and that the failure is a serious and imminent threat to health, safety, and welfare, the commission may appoint a receiver to take any temporary action necessary to [assure] ensure continued service or to bring the service up to appropriate regulatory standards.  The commission may also appoint a receiver to take any temporary action necessary to [assure] ensure continued service if, after notice and hearing, the commission finds that any [water or sewer utility] public utility regulated under this chapter consistently fails to provide adequate and reasonable service.  In carrying out its responsibilities, the receiver and any additional outside legal counsel, consultants, or staff the commission or receiver may deem necessary under the circumstances, shall have the authority to gain access to all of the public utility company assets and records and to manage those assets in a manner that will restore or maintain an acceptable level of service to customers.  The receiver shall be authorized to expend existing public utility company revenues for labor and materials and to commit additional resources as are essential to providing an acceptable level of service.  These expenditures shall be funded in accordance with generally accepted ratemaking practices.  Any costs incurred by the commission, its staff, or the appointed receiver under this section shall be the responsibility of the public utility in receivership or its ratepayers.  Control of and responsibility for the public utility shall remain with the receiver until the public utility can be returned to the original owners, transferred to new owners, or liquidated as the commission determines to be in the public interest."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

 

 

Report Title:

PUC; Gas Utility; Electric Utility; Sale; Approval; Non-investor-owned Utilities; Alternative Bids; Public Utility Receiver

 

Description:

Prohibits the Public Utilities Commission from approving the sale of a gas utility, or electric utility, in whole or in part, to a private entity, unless the utility being offered for sale demonstrates that it solicited competitive offers from an entity operating under a non-investor-owned utilities ownership model, and notes whether or not non-investor-owned entities submitted acceptable bids, in any application to the PUC requesting authorization for a sale of the utility.  Authorizes the PUC to establish a procedure for consideration of alternative bids if there is a sale of a gas or electric utility.  Specifies that the appointment of a receiver for a distressed utility applies to all public utilities.  Effective 7/1/3000.  (HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.